Experts warn that gas prices are likely to rise due to a slowdown in oil production.
AP
Gas prices are likely to rise again.
The Organization of the Petroleum Exporting Countries (OPEC) announced on Wednesday, October 5, its decision to reduce oil production at 2 million barrels per day.
Experts warn that this step will most likely lead to higher prices at gas stations. Here’s what you need to know.
How much will gas prices rise?
It’s been a tumultuous summer for gas prices.
Prices hit an all-time high on June 14, when the national average hit $5.01, according to AAA. Since then, prices have softened, down 99 days in a row until September 21.
As of October 5 average price of a gallon of gasoline was US$3.831 compared to the previous week’s average of US$3.765 and the September average of US$3.786.
Gas and oil prices are linked, so as oil production slows and prices rise, so will gas prices, experts warn.
In the United States, consumers could see an impact of approx 15 to 30 cents per gallon as a result of OPEC’s decision, estimated GasBuddy analyst Patrick De Haan.
Other factors affect gas prices in the United States also now, however, causing a wide range of prices across the country, according to Andrew Gross, a spokesman for AAA.
“The regional differences in gas prices are stark right now, with prices on the West Coast reaching $6 a gallon and above, while Texas and the Gulf Coast are seeing prices drop below $3 in some areas,” Gross said. in the news from October 3. liberation. “At least six California refineries are undergoing maintenance and there is limited pipeline supply to the West Coast from locations east of the Rockies.”
These influences can work as a counterbalance the impact of rising oil prices however, De Haan told Axios.
“Once these issues are resolved, the decline is likely to overwhelm the rise in oil prices,” De Haan said.
